You need to read this. It’s super important. It affects you.
Guess what? We only have 98 homes for sale right now in Brentwood. About six months ago, I predicted we would be at this level, and I backed him. We were at about 180. We’re about half the amount of inventory we were six months ago. The absorption rate, and what is the absorption rate? It’s more important in a market analysis. What that is is basically, it says how long would it take for us to all off all of our inventory. In Brentwood, it would take 1.26 months right now to get rid of our inventory.
Why is this important? Because in a normal market, it’s considered to have a six-month inventory level. That’s amazing. That means that we have low, low inventory. Think about supply and demand. What does supply and demand say? The less you have of something, the more it’s worth. I’m predicting that we’re going to see increases again in 2018. My prediction is probably somewhere between 6% and 8%. Now let’s talk about [inaudible 00:01:02]. This is insane. There’s only 34 homes on the market, and the absorption rate is .34. Oakley, also 34 homes, and that absorption rate is .79. Remember, a normal market is six months. We’re anywhere from 1.26 to .34 months in the east county. That means appreciation right now and years to come.
If you’re thinking about selling, don’t wait. Think about what you learned in economics. Supply and demand. We have low, low supply right now, and we still have heavy demand because interest rates are low, which means the value of your home, multiple offers on your home price increase is going to happen. Make it a great day, and hey, anything else you need real estate related, please reach out to me. Krista Mashore Homes by Krista. Make it a great home buying and selling day, and thanks so much for watching.